# United Parcel Service Inc. (UPS) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/UPS/thesis · /stocks/UPS/memo

## Financial Snapshot

---
ticker: UPS
step: 04
generated: 2026-05-12
source: quick-research
---

### United Parcel Service, Inc. (UPS) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $91.0B | $91.1B | $89.0B | -2% |
| Adj. Operating Margin | 10.9% | 9.8% | 10.8% | +100bps |
| Adj. Operating Profit | $9.9B | $8.9B | $9.6B | +8% |
| Adj. EPS | $8.78 | $7.42 | $7.07 | -5% |
| Free Cash Flow | $5.3B | $6.3B | $5.5B | -13% |

#### Segment Performance (FY2025)

| Segment | Revenue | Op Margin |
|---------|---------|-----------|
| U.S. Domestic Package | ~$55B | ~10% |
| International Package | ~$17B | ~17-18% |
| Supply Chain Solutions | ~$17B | ~9-10% |

#### Q1 2026 Highlights

| Metric | Q1 2026 | YoY |
|--------|---------|-----|
| Total Revenue | flat | |
| U.S. Domestic Revenue | -2.3% | volume decline, price +6.5% |
| International Revenue | +3.8% | price +10.7% |
| Supply Chain Revenue | -6.5% | Mail Innovations drag |
| EPS | beat estimates | transition costs pressure margin |

#### Amazon "Glide-Down"

| Metric | Value |
|--------|-------|
| Amazon FY24 % of revenue | 11.8% |
| Volume reduction by June 2026 | 50%+ |
| Daily volume removed | ~2M pieces per day |
| Revenue exit (cumulative) | $5B |

#### Network of the Future Progress

| Metric | Status |
|--------|--------|
| Volume through automated facilities (target June 2026) | 68% |
| Per-piece cost reduction in automated facilities | -28% |
| Operations closed FY25 | 195 |
| Buildings closed FY25 | 93 |
| Labor hours removed FY25 | 26.9M |
| Operational role cuts FY25 | 48K |
| Operational role cuts planned FY26 | 30K additional |
| Additional facilities closing by June 2026 | 24 |
| Total savings FY25 | $3.5B |

#### Andlauer Acquisition (November 2025)

| Metric | Value |
|--------|-------|
| Deal value | $1.6B |
| Strategic target | $20B healthcare revenue by late 2026 |

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$10B |
| Capital Expenditures | ~$4.0B |
| Free Cash Flow | $5.5B |
| Cash & Equivalents | ~$6B |
| Total Debt | ~$22B |
| Net Debt/EBITDA | ~1.5x |

#### Key Ratios (approximate, May 2026)
- P/E (forward): ~13x | EV/EBITDA: ~9x | Dividend Yield: ~7.3%
- LTM Payout Ratio | 96.9% (tight — bear concern)
- FCF Yield: ~7%

#### Growth Profile
2026 is the "trough year" per CEO Tomé. EPS $7.07 (FY25) represents post-Amazon-glide-down baseline. Bull case: June 2026 inflection, then EPS growth in 2027+ as automated network + higher-margin mix kicks in. Andlauer + UPS Healthcare target $20B healthcare revenue. International margins (~17-18%) lead segment profitability.

#### Forward Estimates
- **FY2026E Revenue:** ~$88-90B (flat — Amazon glide-down mostly absorbed)
- **FY2026E Adj EPS:** ~$7.00-7.20 (trough)
- **FY2027E EPS:** ~$8.50 (+20% recovery)
- **FY2028E EPS:** ~$10 (network + healthcare scale)
- **65% Long-term Upside Target (TIKR):** $130+

#### Capital Return
- Dividend $6.56 annual (~$5.6B paid) — 7.3% yield
- 25+ consecutive years of dividend growth (no cut)
- Buybacks paused for cost focus
- Total return: heavily dividend-driven

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/UPS/fundamental

## Navigation

- Overview: /stocks/UPS
- Financials (this page): /stocks/UPS/financials
- Thesis: /stocks/UPS/thesis
- Investment Memo: /stocks/UPS/memo
- Coverage universe: /stocks